Never miss an update

Puma AMQ AMQ 03 Alexander McQueen Move P3 Mid Womens Trainers Rose Pink 357165 03 P3 f22175c




Never miss an update

Puma AMQ AMQ 03 Alexander McQueen Move P3 Mid Womens Trainers Rose Pink 357165 03 P3 f22175c - blurrypron.com

    Puma AMQ AMQ 03 Alexander McQueen Move P3 Mid Womens Trainers Rose Pink 357165 03 P3 f22175c
    Puma AMQ AMQ 03 Alexander McQueen Move P3 Mid Womens Trainers Rose Pink 357165 03 P3 f22175c
    Under Armour Women's Charged 24/7 Low Running Shoes size 8.5Adidas Women's Alphabounce Hpc W Running ShoeWomen's Trail Terraventure Athletic Shoes Size 6 Lt Blue/Sapphire NIB , KEEN Gypsum II waterproof leather boots midnight navy size 8.5 $150NEW Air Max Jewell GOLD MEDAL METALLIC VARSITY RED 910313-700 sz 6W / 4.5MUnder Armour Women's Speedform Gemini 3 Running Shoes 1285481-003 size 7.5 , Skechers Performance Womens Go Walk 4 Merge Walking Shoe- Select SZ/Color. , * NEW * Asics Gel Contend 4 Womens Flexible Running Shoe (B) (2093)Under Armour Women's Rotation 1296204-918 True Ink Blue Infinity Bayou Brand New(NEW)Women's NIKE Free 5.0 TR Combat Gym Training Boots LTR: Sz 7.5 , adidas Forest Grove W Womens Peach Suede & Nylon TrainersWomen's Blue Chuck Taylor All Star Dainty Denim Ballerina Slipon Ox Size 8 , WOMEN'S NEW BALANCE 574 Tech Raffia Military Foliage Green Stone Grey WL574FACNike Air Max 90 2007 Women Size 7.5 Sanddrift Cognac Sienna 312052-121 CoralNew Nike Nike Air Zoom Elite -Blue/ Size 9New Womens Reebok ROYAL GLIDE RPLCLP BS6805 WHITE/ BLUE US W 6.0 - 11.0 TAKSE , Mizuno Wave Horizon Size US 10 M (B) Women's Running Shoes Gray Orange , Leather Womens Sequins Bling Multi Athletic Shoes Casual Sports Shoes Sneakers # , Wmns Nike Revolution 4 IV Women Running Shoes Sneakers Trainers Pick 1New Balance W990GL3 Women's 990 Gray/White Shoes Sz 10.5 M Made In USA , Bottines en cuir GUESS TAMARA NEUFSNEW NIKE WOMENS W AIR ZOOM FEARLESS FLYKNIT 850426-002 Size 10 11 Retail $140 , NEW NIKE NEW SCHOOL Womens 7.5 (6Y) Blue Black air retro Limited NIB NR , WOMEN'S/JUNIOR SHOES ADIDAS ORIGINALS LOS ANGELES [BB2467]Converse Chuck Taylor Shoreline Slip Athletic Navy Women Canvas Low-top Trainers , Nike Women's Revolution 2 (WIDE) Running Shoe Sz 5.5Reebok Exhilarun Womens Running Trainers / Sports Shoes - BlackWomens NIKE FREE RN DISTANCE Running Trainers 827116 005Merrell Womens Ladies Applaud Breeze Slip On Casual Outdoor Sports Shoes Grey UK
    Puma AMQ AMQ 03 Alexander McQueen Move P3 Mid Womens Trainers Rose Pink 357165 03 P3 f22175c - blurrypron.com>Puma AMQ AMQ 03 Alexander McQueen Move P3 Mid Womens Trainers Rose Pink 357165 03 P3 f22175c - blurrypron.com
    NIKE SB ZOOM JANOSKI HT BLACK / DARK GREY / METALLIC GOLD AUST SELLER , Men's/Women's Givenchy BM08416814 001 Mens Trainers Good design Selected materials As of the latest modelLimited New Balance 1600 CM1600CP 9.5 990 Purple Grey White 991 993 992 , ASICS GEL KAYANO 24 WOMENS BLACK PHANTOM RUNNING SHOES **FREE POST AUSTRALIAShoes Skechers Equalizer Expect Miracles 12034 pkpr Woman Pink Sneakers , luxurious leather shoes black BOSTON by ARTUR PINHO size 43 mintLadies Rieker L8360 Grey Slip On Ballarina Flats , Arcopedico Vitoria Red Leather Flats Mary Jane, Size (US 8 to 8.5)NEW WOMENS SUPERSOFT DIANA FERRARI WORK/CASUAL WEAR SHOES SZ 7.5 ~Womens Material Girl Frieda Black Flats 8 M , Converse Women's Chuck Taylor All Star Madison Ox Basketball Shoe… , STUART WEITZMAN Black EXALT Evening Sling Backs Kitten Heels~Size 6B , Womens shoes over the Knee High Boots Casual Sandal Stiletto Peep Toe Stretchy , BUTTER Cheetah Suede Kitten Heel Pumps, red/black, size 7 , Manolo Blahnik Black White Patent Llonicabi Ankle Strap Sandals SZ 36.5 NIB $865 , NIB Valentino Rockstud Brown Bead Strap Gladiator Ankle Flat Sandal 38 $1495 , NIKE - MEN'S FREE HUARACHE CARNIVORE SP - OBSIDIAN - 10 - DS - 100% AUTHENTIC , Mens NIKE JORDAN J23 LOW Black Trainers 905288 011 , Converse CT AS RD Hi Top White / Black Men's Size 11 , nike air max 90 essential Bone Size 10.5 , NIKE AIR VAPORMAX FK UTILITY AH6834-003 BLACK COOL GREY WHITE NEW SIZE 8.5 , Nike Air Foamposite Pro Pure Platinum Yeezy SZ 8.5-10.5 616750-003 DB RED Royal , Gentlemen/Ladies Represent Chelsea Boot in Auburn High quality and cheap Good market Popular recommendation , Men Rivet Leather Rock Slip on Loafers Board Casual Fashion Punk Round toe ShoesMizuno Wave Inspire 10 Running Shoes Women’s 8.5 US Excellent Plus Condition , ASICS Q850N Womens Metrolyte II Running Shoe- Choose SZ/Color.Nike Lunarepic Flyknit Womens Size Running Shoes Crimson Orange Black 818677 600NIB Jack Rogers Ryan Haircalf Boots in Leopard Womens Sz 6 M , KHRIO ANKLE BOOTS SIZE 39 EU/8.5M LIGHT GRAY SUEDE NIOB $144 , Demonia Gothika-50 goth gothic black vegan platform ankle strappy boots 6-12
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Puma AMQ AMQ 03 Alexander McQueen Move P3 Mid Womens Trainers Rose Pink 357165 03 P3 f22175c - blurrypron.com

    There’s no doubt that the last 2 years has seen the coming of age of ETFs. With what was once an unknown type of investment quickly becoming a $30b industry in Australia ($3 trillion globally). However, as ETFs have moved from the unknown to the flavour of the month, an increasing number of commentators have called on the risks ETF investors face, with some even stating that ETFs will be the source of the next market crash. Today we take a look at some of the claims as to why some believe there are so many risks associated with ETFs.

    Claim 1: ETFS are blindly pushing up stock prices

    Many have written about share markets being at record highs. In an interview with the AFR, Wilson Asset Management chief Geoff Wilson discussed his portfolios’ current high weightings to cash due to concerns of market over-valuations. 

    US based fund manager FPA capital called ETFs “Weapons of Mass Destruction”and stated “The flood of money into passive products is making stock prices move in lockstep and creating markets increasingly divorced from underlying fundamentals”. The argument they make is as ETFs blindly invest in stocks in their chosen index and ignore the underlying fundamentals of these companies. This causes these companies prices to be bid up to prices that do not support their fundamentals (ie a bubble), and eventually history repeats, the bubble bursts and markets crash.

    What do we think?

    ETFs account for around 10% of US stocks’ market value and less than 1% in Australia. In the US at least this is not an immaterial amount. However, the active managers whom ETFs have taken business from generally have mandates which force them to invest a certain percentage in the market. As a result, active managers have always been investing in expensive markets and pushing up prices. Additionally, what is currently called by many analysis as expensive equity markets could also be attributed to global record low interest rates rather than an uptick in passive investing. In saying that, since the last major market crash (the 2008 GFC), the proportion of total assets in ETFs are considerably higher and continual growth of passive investing must be considered as a possible cause of markets becoming expensive.

    Recently we’ve seen Vaneck reweight their huge Junior Gold Miner’s ETF as they approached 20% limits in some of their smaller holdings. This meant selling out of these small gold miners which saw large falls in some of these shares (some of which was blamed on hedge funds looking to capitalise on the opportunity). This is a great example of the influence that ETFs can have, albeit this is at the small end of the market.

    Claim 2: ETFs will sell on mass and compound market falls

    One of the known weaknesses of a managed fund structure is the ability for investors to fairly easily redeem their funds, meaning at times of market falls, when a fund manager may find the best investment opportunities, the investors in the fund are panicking and redeeming their investments, meaning the fund manager becomes a forced seller rather than a buyer. This was one of the reasons Forager decided to turn their Australian Share Fund (FOR) into a Listed Investment Trust, where the pool of capital for them to invest was guaranteed.

    The one thing stopping simple redemption of managed funds during market crashes is another one of its weaknesses, which is managed funds are not simple to trade, and require the investor to apply to the fund to redeem units. This can involve filling out paper forms, and an apathetic investor may simply not be bothered.

    What do we think?

    One of the greatest advantages of ETFs is also one of its weaknesses when it comes to the above, with ETFs able to be traded on the ASX, a panicked investor simply has to log into their online brokerage account and hit the sell button. If a buyer does not exist on the other side of the trade, the ETF issuer is forced to then sell the underlying holdings which could very well begin a contagion effect.

    However, we come back to the size of the ETF market, at around 1% of the Australian market and 10% of the US market. Investors selling underlying stocks that they own through their broker will have the exact same impact as the reasonably small proportion of ETFs. We believe the actual impact of this event would be not materially higher than what currently exists.

    Claim 3: ETFS with low liquidity will be hard to sell if markets fall

    Peter Switzer recently spoke about a client who had received advice that an ETF with low liquidity would be difficult to sell if markets fall. The argument being that without a liquid market the seller would be unable to find a buyer on the other side of the trade and would need to sell at a significant discount.

    What do we think?

    One of the somewhat unknown components of ETFs is the role of the market maker. Essentially the market maker’s role is to provide liquidity to an ETF, so that if there is not an existing ETF unit on the other side of an ETF trade, the market maker must create an ETF unit for a buyer, or absorb an ETF unit for a seller. It is then the ETF issuer's role to buy or sell the underlying assets that the ETF holds. This means that regardless of an ETF’s liquidity, a market maker will always exist to buy an ETF off an investor even if the markets in free fall.

    However, there is a caveat to the above. Market makers make a profit by charging a spread between the buy price and the sell price of an ETF. The spread becomes the market maker’s profit margin. In a free falling market it may be difficult for the market maker to price the underlying investments forcing them to create a huge spread between the buy and sell price to protect their margins. This was seen in the 2015 Dow Jones ‘Flash Crash’, where some ETFs dropped 30% when the market makers were unable to price the underlying securities.

    Puma AMQ AMQ 03 Alexander McQueen Move P3 Mid Womens Trainers Rose Pink 357165 03 P3 f22175c - blurrypron.com

    Finally, an ETF is only ever as liquid as its underlying holdings. ETFs which invest in illiquid investments may have great liquidity, but if the underlying investments do not, this will likely be reflected in falls in both the underlying holdings and the ETF during market falls. This may be more likely to play out at the small cap end of the sharemarket and within unlisted asset classes.

    Claim 4: ‘Exotic’ ETFs are higher risk

    In a recent RBA publication, economist Michelle Cunningham discussed the risks faced with some of the more exotic ETFs, those that are classed as ‘synthetic’ ETFs, meaning the ETF issuer does not hold the underlying investments, rather they rely on a counterparty to pay the return. These ETFs are generally referred to as ‘Synthetic’ or ‘Hedge fund’ in their title. Cunningham raised the risk that the counterparty may default on their obligation, so an additional level of risk exists for the investor.

    What do we think?

    We agree with Cunningham’s analysis, an additional level of risk certainly exists with these ETF structures, however in many cases this is the only way to access to investment strategy that the ETF provides. Nevertheless, investors should be aware of the additional risks that exist.

    Conclusion

    There’s plenty of arguments in both camps about ETFs role in future market crashes. There’s no doubt the world has moved into uncharted territory with the rise of passive investing & ETFs in particular. We do believe, however, that some of the risks are overblow. Nevertheless, investors should be aware of these risks in order to make informed investing decisions. What do you think?

     

    Previous Article

    2017 Financial Year ETF and LIC Performance Table

    Next Article

    New Fixed Interest ETFs expand options for investors

    Leave a Reply
    Find a Fund
    Puma AMQ AMQ 03 Alexander McQueen Move P3 Mid Womens Trainers Rose Pink 357165 03 P3 f22175c
    Athletic Shoes
    >
    ;